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the person with whom the taxpayer originally filed the
joint return. The conference agreement also includes
the provision in the House bill expanding the
circumstances in which innocent spouse relief is
available. Taxpayers, whether or not eligible to make
the separate liability election, may be granted
innocent spouse relief where appropriate. In addition,
the conference agreement authorizes the Secretary to
provide equitable relief in appropriate situations.
The conference agreement follows the House bill and the
Senate amendment in establishing jurisdiction in the
Tax Court over disputes arising in this area.
Deficiencies of certain taxpayers
The conference agreement follows the Senate
amendment with respect to deficiencies of a taxpayer
who, at the time of election, is no longer married to,
is legally separated from, or has been living apart for
at least 12 months from the person with whom the
taxpayer originally filed the joint return. Such
taxpayers may elect to limit their liability for any
deficiency limited to the portion of the deficiency
that is attributable to items allocable to the
taxpayer.
* * * * * * *
Other deficiencies
The conference agreement also includes the
provision in the House bill modifying innocent spouse
relief. Taxpayers who do not make the separate
liability election may be eligible for innocent spouse
relief. * * *
Other circumstances, including tax shown on a return
but not paid
The conference agreement does not include the
portion of the Senate amendment that could provide
relief in situations where tax was shown on a joint
return, but not paid with the return. The conferees
intend that the Secretary will consider using the grant
of authority to provide equitable relief in appropriate
situations to avoid the inequitable treatment of
spouses in such situations. * * *
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